Stamp duty receipts hit £15.2bn as lower thresholds drive higher tax bills
Tags: Residential mortgages
Quick Summary
Stamp duty land tax receipts reached £15.2 billion in the 2025–26 tax year, up from £13.9 billion the year before, as lower tax-free thresholds increased the cost of moving home. This is according to the analysis of HMRC data by Coventry Building Society. The lender points out the nil-rate threshold fell from £250,000 to £125,000 in April 2025, adding £2,500 to the bill on an average-priced home in England. With the average property now costing £290,001, more buyers are being pulled into the tax net. The article argues that outdated thresholds, rising house prices and cost-of-living pressures are making moving more expensive and could slow housing market activity.
Homebuyers paid £15.2bn in stamp duty land tax during the 2025-26 tax year, up from £13.9bn the previous year, according to analysis of HMRC data by Coventry Building Society.
Coventry says the increase follows the reduction in the nil-rate threshold from £250,000 to £125,000 last April, a change which raised the tax bill on an average priced home in England by £2,500.
Latest figures show the average property price has risen to £290,001, meaning more buyers are now being drawn into the tax net as values increase.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp Duty is a big chunk of money on top of an already expensive process.
“With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net. Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on.
“With inflation now at 3.3% the cost of living remains a real pressure – many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb.
“Covering the tax could mean people need to dig deeper into savings, lean on family for support, or compromise on the kind of home they want to buy. It makes it harder to take the next step, whether that’s upsizing, downsizing or moving when family circumstances change.
“Reforming Stamp Duty would give buyers meaningful support at a time when many are already stretched. Without change, the risk is we continue to penalise aspiration and slow down a housing market that depends on people being able to move freely.”
What are the stamp duty payment brackets?
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Example
In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second £125,000 = £2,500
- 5% on the final £45,000 = £2,250
- total SDLT = £4,750
Use the HMRC SDLT calculator to work out how much tax you’ll pay.
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The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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Source: The Intermediary
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